UK GAAP - FRS 101

FRS 101 ‘Reduced Disclosure Framework’ sets out the financial reporting requirements and disclosure exemptions available for use by subsidiaries and ultimate parent companies in their individual financial statements.

FRS 101 permits qualifying subsidiaries and ultimate parent companies to apply the recognition and measurement principles of IFRS in their individual financial statements. Applying FRS 101 may lead to a reduced number of consolidation adjustments necessary to produce the group accounts, and provides a welcome relief from some of the extensive disclosure requirements of IFRS at the entity specific level.

What is a qualifying entity?

A qualifying entity is a member of a group where the parent prepares publicly available consolidated financial statements which are intended to give a true and fair view and the qualifying entity must also be included in that consolidation.

FRS 101 may not be applied to consolidated accounts but may be applied to the individual accounts of a company which prepares consolidated accounts. Additional conditions need to be met before FRS 101 can be applied.

What disclosure exemptions are available?

FRS 101 provides a number of disclosure exemptions for qualifying entities, some of which are available automatically and some of which require equivalent disclosure by the parent entity in whose consolidated accounts the qualifying entity is included.

International desks

Social

RSM staff log-ins

The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practises in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. Read more